(CRM) Salesforce.com – Bear of the Day

Salesforce.com (CRM) reported decent third quarter 2012 results. The earnings guidance is also decent, but cost increase may offset revenue growth to a certain extent. We are concerned about continuous R&D investments that would rationalize margins to some extent.

We find Chatter a key driver of Salesforce.com’s enterprise license agreements. We, however, caution investors about strong competition in CRM application and cloud-computing areas. Google and Microsoft are worthy of special mention, since they have been fighting to win government clients at local, state and federal levels to use their online e-mail and other applications that fit into the cloud-computing space.

Currently, we have an Underperform rating on the stock and set a six-month target price of $108.00. This implies a downside risk of 8.7% from the current level.

SALESFORCE.COM (CRM): Free Stock Analysis Report

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | Internet Software & Services | Technology

RSS feeds: CRM | Salesforce.com | Internet Software & Services | Technology |

Other Posts by | RSS Feed for this author